Anadarko says it plans to end its $33 billion takeover deal with Chevron in favor of a revised bid by Occidental.
Occidental's offer is worth about $57 billion in cash and stock, including debt and book value of non-controlling interest. Chevron's offer would be worth about $50 billion by the same metric. Last month Warren Buffett's Berkshire Hathaway said it would put up $10 billion in financing for Occidental.
Anadarko said its board determined Occidental Petroleum Corp.'s offer was superior. Under its deal, Chevron has until Friday to make a revised proposal or a new offer.
Anadarko Petroleum Corp. will have to pay a $1 billion fee if it ends the deal with Chevron Corp.
Shares of Anadarko edged higher before the market open on Tuesday. Chevron's stock declined slightly.